![Kodiak Gas Services Makes Public Debut After Slashing IPO Price](/sites/default/files/styles/hart_news_article_image_640/public/image/2023/06/kodiak-gas-services-makes-public-debut-after-slashing-ipo-price.jpg?itok=OzMEeWz7)
Contract compression provider Kodiak Gas Services made its public debut on the New York Stock Exchange June 29. (Source: Kodiak Gas Services)
Contract compression provider Kodiak Gas Services made its public debut on the New York Stock Exchange June 29.
The Montgomery, Texas-based company priced its IPO of 16 million shares at $16 per share, according to Securities and Exchange Commission Filings. The lion’s share of Kodiak’s fleet is deployed in the Permian Basin.
That’s down from earlier this month, when Kodiak was aiming to price its IPO at between $19 and $22 per share.
Kodiak said it anticipated raising net proceeds of between $230.4 million and $266.5 million through the offering after subtracting estimated expenses—and if underwriters exercise in full their option to purchase 2.4 million additional shares of Kodiak common stock.
The offering is expected to close on July 3.
Kodiak plans to use the proceeds from the IPO to help repay $300 million in outstanding debts.
The company’s stock price was down around 1% at $15.85 per share when markets closed on June 29, according to Yahoo Finance data.
Kodiak operates a fleet of contract compression assets for natural gas and oil customers. The vast majority of its compression horsepower — 70% — is positioned in the Permian, and the company also has a notable presence in the Eagle Ford Shale (14%).
Kodiak also has revenue-generating horsepower deployed in the Powder River Basin, the Midcontinent, Appalachia, the Denver-Julesburg Basin and the Haynesville Shale.
![Kodiak Gas Horsepower Map](/sites/default/files/inline-images/Kodiak_Gas_Horsepower_Map.jpg)
The company’s compression operations generated sales of around $177 million during the first quarter, Kodiak disclosed in regulatory filings.
Goldman Sachs, J.P. Morgan and Barclays are serving as lead book-running managers for Kodiak’s public offering. Latham & Watkins provided legal advice on the IPO.
RELATED: Kodiak Gas Services Aims for $1.65B Valuation in US IPO
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